Cyberbacker Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$52,000 - $84,950
Franchise Fee
$25,000
Min Cash Required
$2,000
Total US Locations
31
Business Summary
Cyberbacker International, Inc. operates a business that connects business owners with outsourced virtual assistants, called cyberbackers, who provide remote administrative and other types of assistance. These cyberbackers perform various tasks such as administrative support, employee training, marketing, customer service, lead generation, and sales for a diverse range of business clients, from small to large.
Corporate History
Cyberbacker International, Inc. was incorporated in Utah on September 29, 2020, and began offering Cyberbacker® franchises in January 2021. An affiliate, Cyberbacker, Inc., was incorporated in Utah on May 6, 2019, and has operated the core virtual assistant outsourcing business since then, with its principals developing the system for approximately three years prior to its incorporation. Another affiliate, Cyber Capital, L.L.C., was organized in September 2021 to provide financing to qualified franchisees.
Financial Overview
Investment Range
$52,000 - $84,950
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$2,000
Equipment Costs (Low)
$150
Equipment Costs (High)
$15,150
Working Capital
$4,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Cyberbacker International, Inc.'s audited financial statements for the past three fiscal years (2021-2023) indicate net losses each year, specifically $(116,888) in 2021, $(24,443) in 2022, and $(165) in 2023. The company also experienced negative cash flow from operating activities in 2022 ($154,992) and 2023 ($113,964). Total assets and stockholder's equity decreased from 2021 to 2023. Additionally, Cyberbacker International, Inc. has a significant related party payable to its affiliate, Cyberbacker, Inc., which stood at $90,652 at the end of 2023.
Financing Details
Cyberbacker International, Inc. itself does not offer direct or indirect financing. However, its affiliate, Cyber Capital, L.L.C., offers financing to qualified franchisees. These loans can be up to $50,000, not exceeding 75% of the initial fees for the franchise, and can cover initial franchise fees, support team fees, marketing, and other initial and ongoing expenses. The term of the financing ranges from 6 to 24 months, with 6 to 24 monthly payments. The interest rate is the Prime rate plus 3.25% for loans up to $50,000, and Prime rate plus 2.25% for loans over $50,000. The loan is secured by a promissory note, a personal guaranty, and a security interest in commissions earned by the franchisee. Franchisees are required to waive certain defenses or legal rights.
Performance Metrics
Total US Locations
31
Franchised Units
30
Corporate Units
1
Avg Square Footage
300
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cyberbacker International, Inc. has no litigation history to report. The FDD states that no litigation is required to be disclosed in this item.
Bankruptcy History
Cyberbacker International, Inc. has no bankruptcy history to report. The FDD states that no bankruptcy is required to be disclosed in this item.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Cyberbacker® franchise, franchisees must not be in default of their agreement and must have consistently met the material terms and conditions throughout the initial term. This includes achieving a minimum of 15% market share in their designated market by the end of the initial term. Franchisees must also modernize their business to meet current standards and sign the then-current successor franchise agreement, which may have materially different terms. A legal release of claims against Cyberbacker International, Inc. is also required. Franchisees must provide written notice of their intent to renew between 6 and 12 months before their current agreement expires. There is no renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, Cyberbacker International, Inc. assists franchisees by approving their industry-specific market, providing written specifications for required items, supplying a list of approved suppliers, and granting electronic access to confidential manuals. The franchisor also helps franchisees select and train their dedicated support team (growthbacker and careerbacker) through an affiliate. Franchisees in exclusive markets are assigned a mentor for ongoing support with operations, business management, lead generation, and marketing, including weekly 30-minute meetings. Once operating, Cyberbacker International, Inc.'s affiliate handles client contract fulfillment and billing. The franchisor provides updates to its manuals, offers assistance via video conferencing, and supplies a technology suite that includes an email account, phone number, and video conferencing platform. The franchisor also approves the franchisee's required business coach for at least the first year.
Initial Training Hours
9
Training Location
Online/video conference
Ongoing Support
After opening, Cyberbacker International, Inc.'s affiliate provides fulfillment of all client contracts and handles billing matters. The affiliate also assists in replacing support team members if needed. Cyberbacker International, Inc. approves the franchisee's required business coach, provides ongoing updates to its manuals, and offers assistance via video conferencing upon reasonable request. Franchisees receive a technology suite (email, phone, and video conferencing platform). If a franchisee is in an exclusive market, they are assigned a mentor who provides ongoing support with operations, business management, lead generation, and marketing through at least one 30-minute phone or video conference meeting each week. The franchisor may also hold conferences for franchisees, with attendance being mandatory for the operating principal, and may conduct additional seminars.
Franchise Requirements
Ideal Candidate Profile
Cyberbacker International, Inc. seeks individuals whose operating principal will personally participate in the direct operation and supervision of the franchise business, dedicating sufficient hours to ensure maximum capacity and efficiency. The ideal candidate will be tasked with teaching business-to-business (B2B) classes and mastermind courses, managing client relations, and overseeing and coordinating their support team. Key responsibilities include completing all required training and retraining, attending weekly phone meetings, monthly mastermind meetings, and annual conferences, being directly involved in all personnel decisions (including hiring and training their growthbacker and careerbacker), participating in educational training with potential clients, and being proficient in all applicable software and operating systems. Franchisees must also hire an approved business coach for at least the first year.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Cyberbacker International, Inc. grants franchisees the right to target an industry-specific market within a certain geographical area. The exact size and characteristics of this market are determined before the franchise agreement is signed. For example, a market could be defined as all accountants and bookkeepers in Orange County, California. While there is no minimum geographic area for an industry-specific market, Cyberbacker International, Inc. will not approve any market with fewer than 300 potential clients in that market/geographic area.